Catlin Group

Catlin Underwriting Agencies Limited (CUAL) was established as an underwriting agency at Lloyd's of London in 1984 by Stephen Catlin, who today remains chief executive of the Catlin Group. Catlin's first Lloyd's syndicate (Syndicate 1003) began underwriting in 1985 on behalf of Lloyd's Names (private individuals who invested in the Lloyd's market) with a premium capacity of £6 million.

Syndicate 1003 grew successfully during its early years, outperforming the Lloyd's market as a whole, particularly during the period from 1988 to 1992 when Lloyd's reported huge financial losses.

By its 10th anniversary in 1995, Syndicate 1003 had increased its premium capacity to £170 million. During that year, the company received a substantial private equity investment from Western General Insurance Company of Bermuda, which was controlled by the Pritzker family. The investment allowed Catlin to establish a second Lloyd's syndicate (Syndicate 2003), which underwrote coverage in parallel with the established Syndicate 1003. While Syndicate 1003 continued to write coverage on behalf of capital supplied by traditional Lloyd's Names, Syndicate 2003 was backed by capital solely supplied by Catlin.

In 1999, Catlin incorporated a holding company in Bermuda, originally called Catlin Westgen Holding Limited and later renamed Catlin Group Limited. Catlin was the first of the traditional Lloyd's of London managing agents to establish a holding company in Bermuda, a strategic move later copied by several of its peers.

Following the World Trade Center tragedy in 2001, Catlin expanded its operations and strengthened its balance sheet. In 2002, Catlin raised US$532 million in private equity funds from a consortium of investors (including $482 million of new equity capital and the provision of a $50 million term loan facility). The equity capital, in the form of convertible preferred stock, was provided by a consortium of private equity investors. It was the only company operating at Lloyd's to receive private equity financing in the wake of 9/11; most of the funds that were injected into the insurance market were directed to start-up insurance and reinsurance companies formed in Bermuda.

Catlin shares were listed on the London Stock Exchange in 2004. The Group's initial public offering, which was several times oversubscribed, raised nearly $200 million in new capital.

In October 2006 Catlin announced that it intended to acquire Wellington Underwriting plc, which managed one of the largest syndicates at Lloyd's and had established underwriting operations in the United States: the acquisition was completed on 18 December 2006.

On 9 January 2015, it was announced that Catlin Group would be acquired by XL Group plc. The acquisition was completed in May 2015.

Operations

Underwriting hubs

Catlin organises its operations into six 'underwriting hubs': London/UK, Bermuda, United States, Asia-Pacific, Europe and Canada.

The Group maintains that the underwriting hubs serve to diversify Catlin's underwriting portfolio as the offices within each hub underwrite regional business that would not normally be written at Lloyd's or in the London market. The offices also allow Catlin to work more closely with clients and their brokers on a local basis.

The London/UK hub is composed of Catlin's original operation and includes London wholesale insurance and reinsurance business underwritten by the Catlin Syndicate at Lloyd's (Syndicate 2003), the largest syndicate at Lloyd's of London in terms of premium volume, and Catlin UK (Catlin Insurance Company (UK) Ltd.), which writes UK regional business as well as London market wholesale business.

The Bermuda hub consists of the operations of Catlin Bermuda (Catlin Insurance Company Ltd.), which underwrites property and casualty treaty reinsurance and selected classes of specialty insurance.